Sounds to me like a poorly maintained car that will take quite a bit to bring back to even close to par. Others have already mentioned the bushings etc that a car with that many miles on it will need. If the owner has not fixes the important stuff like heat and OD what else have they let go?

I've brought 2 240s and a 740 back from the edge of the junkyard and am working on a '84 245T, I can say unless you are ready to do your own work and have good access to U-Pull type yards I'd pass, well, $500 at most. BTW as far as I know there is no relay in the heating circuit, the fan uses a resistor to regulate speed and the heat is controled by a thermostaticly (sp?) regulated valve.
Just my oppinion
Dave Shannon
Spring Valley, California (San Diego area)
'84-245 200K+
'84-245T 190K+
'85-244Ti 200K+
'86-740 230K+
'88-240 180K+
www.volvo2.homestead.com (Opens new window)